If you plan to sell investments which have appreciated significantly, consider selling others that have lost value. Harvest tax losses to offset capital gains: Harvesting losses in the same year as your gains will reduce your taxable income. People aged 50 or over can generally contribute another $6,500 per year. Max out contributions to your retirement accounts: Pre-tax contributions to workplace retirement savings plans and IRAs reduce your current taxable income. working remotely.įinally consider these three evergreen strategies for reducing the amount of overall taxes you owe: If employees are working remotely (outside of Multnomah County) for a Multnomah County employer, their wages may not be subject to the tax or may be prorated based on time “in the office” vs. If you live outside of Multnomah County, only Multnomah County-sourced income is subject to the tax. The new law states that “all Oregon taxable income of Multnomah County residents” is subject to the tax. Nonetheless, if you’re a high earner, it might be worth the extra effort to calculate your returns both jointly and separately to see which will save you more.Īlso, if you work remotely, ask your CPA whether this tax will apply to you. However, if you have dependent children, the tax savings may be offset by fewer family-oriented credits available to reduce your income tax liability. If you are married, you may want to ask your CPA to see if married filing separately would reduce your exposure to these new taxes. It’s very difficult to avoid a tax that applies to all income. WHAT CAN I DO TO REDUCE EXPOSURE TO THESE NEW TAXES? However, an employer must offer to its employees in writing to withhold the Multnomah County personal income tax from the employees’ wages as soon as the employer’s payroll system(s) can be configured to capture and remit the taxes withheld.īeginning January 1, 2022, and each year thereafter, withholding is mandatory for all subject employees earning $200,000 or more during the calendar year, unless the employee opts out. In 2026, the tax rate increases by 0.8%.ĪRE EMPLOYERS WITHHOLDING FOR THESE NEW TAXES?
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